Net sales were $ 1,500,000 and profit was $ 250,000 in the second year of operation for Tirekicker's Used Car Company. Total assets in the first year were $ 800,000 and in the second year $ 1,200,000.
Instructions
a) Determine the asset turnover and the return on assets for Tirekicker's Used Car Company.
b) What do these ratios show?

Question

Quizplus · Accepted Answer

The Answer of Net sales were $ 1,500,000 and profit was $ 250,000 in the second year of operation for Tirekicker's Used Car Company. Total assets in the first year were $ 800,000 and in the second year $ 1,200,000.
Instructions
a) Determine the asset turnover and the return on assets for Tirekicker's Used Car Company.
b) What do these ratios show?

Net Sales Were $ 1,500,000 and Profit Was $ 250,000